Equilibrium Expenditure Is the Level of Expenditure at Which

question 206

Multiple Choice

Equilibrium expenditure is the level of expenditure at which

• A) firms' inventories are zero.
• B) firms' inventories are at the desired level.
• C) firms' produce more output than they sell.
• D) aggregate planned expenditure minus planned changes in inventories equals real GDP.
• E) aggregate planned expenditure plus planned changes in inventories equals real GDP.

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Definitions:

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A theoretical or specific item in economics used to model transactions, market behavior, or consumer choice.

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